AFPS15 - government decision.

[pba_target]

Originally Posted by Common_Sense

How do we expect the tax situation to work if the service leaver suddenly receives money (pension) above their current income from their new employment? Surely it won’t be taxed at the 2023 months income tax rates as additional income?

I assume (naively) that because it is clearly identified as money that has been "illegally" withheld, as opposed to a change of policy, that it would be taxable for the years it was supposed to have been paid. Likewise for the pension fund "jump" which would likely exceed the annual threshold, clearly it hasn't been accrued magically in one year - it was always there, just being withheld.

Obviously that would be the right and decent thing, so I think we can all assume the opposite will happen and watch HMRC tax it at the highest rate of interest possible....

[Atlasisrubbish]

AFPS05/ 15 versus 05

I’ve now got all the paperwork and a lump sum in under 21 days. I’ve been lucky.

I’ve also had a rough stab at which is best, and unless I’ve got something really wrong I’m going to be better off on a mix of pensions. Has anyone else had a fag packet go at the sums?

[Lima Juliet]

Originally Posted by Atlasisrubbish

AFPS05/ 15 versus 05

I’ve now got all the paperwork and a lump sum in under 21 days. I’ve been lucky.

I’ve also had a rough stab at which is best, and unless I’ve got something really wrong I’m going to be better off on a mix of pensions. Has anyone else had a fag packet go at the sums?

Yes, if you are going to 60 with AFPS15 then everyone should be better off with 15 than 05. My reasoning for that is that the final pension (not talking EDP here) is based on 1/47th on 15 across a career average (which is career average since 2015 for most retiring now) and 1/70th of your best 365 days’ pay in your last 3 years. Of course, everyone’s circumstances are different, so definitely do your sums carefully!

[Common_Sense]

Has anyone tied the new calculator?

Is there anyone that has left service and tried the new calculator to try and understand what they’re owed?

[Bob Viking]

Common Sense

I have. Let’s hope it’s just a beta version. I’d say it still needs work!

BV

[Lima Juliet]

Yep, as BV says, it needs a bit of work and for Reservists it is a retrograde step as it doesn’t seem to do RFPS05 anymore. However, you can adjust the dates a little if you left in the last year or so and still get a fairly good indicator of what you’re likely to get.

[High Average]

Originally Posted by Common_Sense

Is there anyone that has left service and tried the new calculator to try and understand what they’re owed?

It doesn't work if you have already left as far as I can see. Glasgow wrote to me a few days ago and said that I would receive a letter detailing the amounts with/without the McCloud judgement in the coming months rather than via the calculator

[alfred_the_great]

It’s says at the very beginning it is a calculator for serving personnel…

[kweelo]

From the AFPS:

As you are probably all aware, the enhanced Armed Forces Pension Calculator is now live, and will provide Serving Personnel with an illustration of their pension entitlement, and for those who are in-scope for the AFPS 15 Remedy, a side-by-side comparison of their reformed (AFPS 15) and legacy scheme benefits.

Many of our Veteran members are asking the team if the new version of the calculator will be available for those who already left. Unfortunately, the answer is no, it only operates for serving personnel (as per the previous version of the calculator).

Veterans will need to wait for their Remediable Service Statement (RSS) which will be issued within 18 months from 1 October 2023 – so by 1 April 2025

The initial RSS will not facilitate an election choice unless/until your deferred benefits are due to come into payment. Rather this RSS will simply compare the pension benefits for the remedy period for information purposes only. Thereafter, members with deferred benefits can request one RSS per year if they wish until such time as their pension benefits are payable, at which point they will be requested to make their remedy choice.

[Melchett01]

Originally Posted by Bob Viking

I have. Let’s hope it’s just a beta version. I’d say it still needs work!

BV

Further to my post on the other thread - finally got a vaguely sensible answer out of the new calculator, but only after I selected ‘No’ to the AVCs question. So at least the result should undershoot what I’m actually owed.

That said it’s still a surprising result in that my lump sum is greater if I revert to the 75 Scheme and my annual pension is greater if I stay as I am on the scheme that kicked in in Apr 15. Slightly surprised as I promoted in 2017 so was hoping that promotion under 75 Scheme terms might be a bit of a boost.

The utter confusion that is MOD pensions continues!

[ForcesPensionSociety]

The AFPS 15 accrual rate is better than that of AFPS 05 but you need to factor in that AFPS 05 has an automatic lump sum whereas AFPS 15 does not. However, if you surrender pension, you can generate a bigger lump sum than that of AFPS 05.